9 years of GST: Center highlights tax reforms, MSME benefits and GST 2.0 changes

Nine years after the introduction of the Goods and Services Tax (GST), the Center on Tuesday said the indirect tax regime is playing a key role in creating a single national market by promoting the vision of ‘One Nation, One Tax’. The government said GST has continuously evolved through policy reforms, digital initiatives and stronger collaboration between the Center and states, making the tax system more efficient and business-friendly.

In an official statement marking 9 years since the introduction of GST on 1 July 2017, the government noted that the tax regime has undergone continuous improvement, with the 2025 next-generation GST reforms further streamlining the tax structure through lower rates, expanded exemptions and simplified compliance procedures.

GST replaced the complex web of 17 indirect taxes and 13 taxes and brought them together under a single tax framework. Before its introduction, India’s indirect tax system included several central and state levies, leading to different tax rates and compliance requirements across the country.

“The launch of the Goods and Services Tax (GST) on July 1, 2017 marked a historic achievement in India’s reform journey. The ‘One Nation, One Tax’ principle has now become a reality and is helping India move towards an integrated tax system,” an official statement said.

“Over the last nine years, GST has strengthened India’s vision of ‘Ek Bharat – Shreshtha Bharat’. It has brought transparency, accountability and economic growth through rationalized tax rates and standardized procedures.”

GST 2.0 ushers in the next phase of reforms

The government said the 56th meeting of the GST Council approved next-generation GST reforms aimed at reducing the tax burden on consumers while simplifying procedures for businesses. The revised tax rates and exemptions came into force on 22 September 2025.

Described as GST 2.0, the reforms represent the next phase of India’s indirect tax overhaul and are expected to boost economic growth while making the GST framework more transparent and easier to navigate.

Key features of the GST framework

According to the government, GST has introduced several structural changes that have fundamentally transformed India’s indirect tax system.

One of its defining features is that the tax is levied on the supply of goods and services, replacing the earlier system in which taxes were levied separately on production, sales and services.

GST also works as a destination excise tax, meaning that the tax revenue is collected by the state where the goods or services are ultimately consumed and not where they are produced.

The tax applies to almost all goods and services across the country, excluding alcoholic liquor intended for human consumption. The government also noted that GST has brought greater uniformity by introducing common tax rates at the national level, adding that five specified goods can be subsumed under GST whenever approved by the GST Council.

The GST Council continues to play a central role in guiding policy decisions and ensuring smooth implementation of the tax regime in all states.

Measures introduced to support small and medium-sized enterprises

The Center also highlighted several initiatives introduced over the years to reduce the burden on Micro, Small and Medium Enterprises (MSMEs), start-ups and small taxpayers.

From April 2019, the GST registration threshold for suppliers of goods has been increased ₹20 million up to ₹40 lakhs, allowing more small businesses to stay out of the tax net.

The turnover cap under the compounding regime, which allows small taxpayers who are entitled to pay GST at a flat rate based on turnover instead of following the regular tax structure, has also been increased from ₹75 million ₹1.5 million, excluding some special category states.

In 2020, the government introduced the Quarterly Return Monthly Payment (QRMP) system, which allows businesses with an annual turnover of up to ₹5 crore for filing GST returns every quarter while continuing to pay taxes monthly.

To further simplify compliance, taxpayers with no business transactions during the tax period could file NIL GST returns through SMS, eliminating the need for online filing in such cases.

The government claimed that the GST regime has continued to evolve over the past nine years through regular policy refinements, digitization and feedback from stakeholders, making tax administration more efficient while promoting ease of doing business across the country.

GSTAT appeal deadline extended

Separately, the government has announced an extension of time for filing appeals with the Goods and Services Tax Appellate Tribunal (GSTAT) under Section 112(1) and Section 112(3) of the GST Act.

The latest deadline has now been extended to 31 July 2026 from the earlier deadline of 30 June 2026 as announced last year.

According to the government, the extension follows statements from various stakeholders who reported technical issues due to surge in submissions on the GSTAT portal as the earlier deadline approached.

Taxpayers have been advised not to wait for the cut-off date and file their appeal well in advance to avoid last-minute technical difficulties.